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Hernando Today

Restaurant Industry Expects Growth In 2009

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By TONY HOLT

Hernando Today

Published: January 11, 2009

SPRING HILL - A robust number of restaurants have closed from County Line Road to Old Crystal River Road.

Big chains, mom and pop restaurants and quick-stops have fallen by the wayside - but several more have since signed leases to occupy those empty spaces.
Five Guys Burger and Fries and Texas Roadhouse are among the latest chains cropping up along Cortez Boulevard.

Ram's Restaurant in Spring Hill was replaced by another locally owned diner.

Pit-Stop Ice Cream Shop closed earlier this month. Coincidentally, D'Lites Emporium opened its newest location a few miles down the road - right next to the aforementioned diner.

"Even in a tough economy, the restaurant industry is a huge generator of jobs and careers," said Maureen Ryan, a spokeswoman with the National Restaurant Association, a research firm out of Washington D.C. "It's the second-largest private sector employer in the United States. In the long-term, we can look for continued growth."

Restaurant industry sales are expected to reach $566 billion in 2009, with 13 million people employed at nearly 950,000 restaurants, based on statistics released by the National Restaurant Association.

Last week, Dunkin' Donuts announced it would pump an additional $100 million on an extensive advertising campaign to market its inexpensive food and beverage selections. Its new battle cry for 2009 is called, "You Kin' Do It!"

Dunkin' is feeling confident after scoring high marks in 2008 and its recent announcement that Nigel Travis, the former chief executive officer at Papa John's, would take over as the donut chain's CEO.

"Dunkin' Donuts experienced tremendous growth and brand evolution in 2008," said company spokeswoman Michelle King. "This allows us to focus our efforts in 2009 on our core products of coffee and baked goods."

Last year, the chain opened 500 stores in the U.S., while its strongest coffee competitor, Starbucks, announced it would close 600 stores - including three in Tampa, two in Clearwater and one in St. Petersburg.

Dunkin' has approximately 500 stores in Florida and sells its products at seven locations in Hernando County.

"Full-service restaurants had a 1 percent increase, but the quick-service restaurants had about a 4 percent increase last year," said Ryan. "You'll see a lot of consumers shift their spending to lower price points with the economy being what it is."

To offset the looming trend away from sit-in restaurants, some chains will introduce more coupons and daily specials - much like the way retailers and car dealerships offer sales during down times, Ryan said.

While overall restaurant industry sales are expected to increase by 2.5 percent this year, that will translate to a decline of 1 percent after inflation, according to the National Restaurant Association.

Florida is ranked fourth in restaurant sales volume behind California, Texas and New York.

Reporter Tony Holt can be reached at 352-544-5283 or wholt@hernandotoday.com.

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